India's IT sector, comprising IT services and business process outsourcing, has transformed the country's economy and is a significant contributor to GDP, rising from 2% to 4.8% in the early 2000s. Major IT hubs include Bangalore, Hyderabad, Chennai, Delhi, and Mumbai, contributing substantially to exports in software and engineering services. India faces challenges in knowledge-intensive sectors but is projected to capture a larger share of global engineering services spending by 2020.